The Nation Newspaper

Category: Investors

  • Sterling Bank’s net profit hits N8.5b

    •Profit grows by 65 per cent

    Sterling Bank Plc recorded strong growths in the top-line and bottom-line last year as it rode on the back of widening income sources and improving operating efficiency to increase its net earnings by 65 per cent.

    Key extracts of its audited report and accounts for last year, released at the Nigerian Stock Exchange (NSE) yesterday showed considerable improvements in key performance indices.

    The report showed that gross earnings rose by 19.8 per cent from N111.4 billion in 2016 to N133.5 billion. Profit before tax increased to N8.61 billion in 2017 as against N6 billion in 2016. Profit after tax grew by 65 per cent from N5.16 billion in 2016 to N8.52 billion in 2017.

    Top-line performance was driven by growth in both interest and non-interest income, which rose by 11.3 per cent and 87.8 per cent respectively. The bank’s net operating income increased by 7.9 per cent while cost-to-income ratio improved by 260 basis points to 71.5 per cent. Customer deposits increased by 17.1 per cent to N684.8 billion in 2017 as against N584.7 billion in 2016. Shareholders’ funds rose by 20.2 per cent to N102.9 billion in 2017 as against N85.7 billion in 2016, reaffirming the bank’s commitment to returning value to its shareholders.

    The board of directors of the bank has recommended distribution of N575.8 million as cash dividend for the 2017 business year, representing a dividend per share of 2.0 kobo.

    The bank’s Chief Executive Officer, Mr. Abubakar Suleiman, said last year’s performance that highlighted positive performance across key financial indices despite challenging operating conditions reaffirms the bank’s underlying institutional strength.

    “The non-interest banking business continued to gain significant traction, adding positively to our bottom-line. This performance underscores the commitment of the entire team to our corporate goals and the resilience of our business model,” Suleiman said.

    He said the bank maintained a disciplined and prudent approach to loan growth in line with its risk management framework, a development which resulted in a significant improvement in asset quality as reflected in the reduction of non-performing loan ratio by 370 basis points to 6.2 per cent.

    He noted that the bank continued to scale its business with support from a well-diversified funding base, pointing out that for the first time, the bank recorded N1.1 trillion in total assets from N834.2 billion in 2016, representing a 28.7 per cent growth.

    According to him, the bank also gained traction in its retail drive with an active customer base that exceeded three million resulting in 17.1 per cent growth in deposits. During the year, the bank’s liquidity and capital adequacy ratios remained sound and well above the required regulatory benchmark at 33 per cent and 12.2 per cent respectively. The bank prioritised efficiency across its businesses as it progressed on its digital transformation journey by successfully launching “Specta”, an innovative online lending platform which offers personal loans within five minutes. It also invested in a first-rate business process management tool to optimise operating efficiency while providing its customers with ‘best in class’ service.

    “In 2018, we will continue to execute our plans to drive efficiency across the business under the three pillars of agility, digitisation and specialisation. These pillars will propel us toward sustainable growth by enhancing our ability to innovate; solidify our retail funding base; strengthen our enterprise-wide risk management framework and drive excellent service delivery across all channels to enhance customer experience,” Suleiman said.

     

  • Stock Exchange delists two firms

    •African Paints, Afrik Pharmaceuticals fail governance test

    The Nigerian Stock Exchange (NSE) has delisted African Paints (Nigeria) Plc and Afrik Pharmaceuticals Plc from the secondary market, ending more than two decades of public quotation for the ailing firms.

    African Paints, which deals in agro-chemicals, general chemicals and paints, was incorporated in 1974 and listed on the NSE in 1996. Imo State-based Afrik Pharmaceuticals was incorporated in 1972 and listed on the Exchange in 1992.

    A circular on the firms delisting  indicated that their shares were delisted at the weekend following approval of the National Council of the NSE.

    The NSE said the firms were delisted after failing severally to comply with best practices as enshrined in post-listing requirements at the Exchange.

    According to the Exchange, it had engaged the companies with a view of returning them to compliance level. When the efforts did not yield results, the NSE sent out a delisting notice on October 13, 2016. However, the companies did not take appropriate steps to regularise their listing status.

    Further to the exercise, the  Exchange notified the companies of its intention to delist them from the daily official list due to their non-compliance with provisions of the Post-Listing Rules on April 11, 2017 through two newspaper publications on April 20, last year.

    The Exchange granted them  additional three months to cure their compliance deficiencies. But, they failed to take steps to regularise their compliance status within the stipulated time.

    “In spite of this, the Exchange continued to engage these companies, but they did not take to the requisite steps to come into compliance, consequent upon the forgoing, the Exchange has proceeded with the delisting of these entities from the Daily Official List,” the NSE stated.

    The Nation in an exclusive report last January reported that six quoted companies were under the watch-list of the NSE for compulsory delisting of their shares from the stock market due to recurring failures to comply with international best practices and corporate governance rules at the market.

    The report noted that the companies were on the delisting watch-list of the Exchange, a list of companies with serious infractions that require considerable organisational changes to comply with the extant rules at the market. The companies included Aso Savings & Loans Plc, African Paints (Nigeria) Plc, Deap Capital Management Plc, Afrik Pharmaceuticals Plc, Evans Medical Plc and Union Homes Savings & Loans Plc.

    The report indicated that the Quotation Committee of the Exchange, which oversees listing and delisting had approved the delisting process of the six companies.

    The NSE operates two delisting windows-voluntary and compulsory delisting. Under voluntary delisting, quoted companies can opt to delist their shares from the Exchange due to various reasons including mergers and acquisitions, restructuring and private interests subject to fulfilment of the delisting rules and requirements.

    Under the compulsory delisting window, the NSE may opt to delist companies that have failed repeatedly to meet extant rules and best practices in line with the Exchange’s commitment to protect investors and ensure that listed companies comply with global best practices.

    The NSE had delisted five companies in 2017 with four of them delisted under compulsory delisting due to infractions and poor corporate governance. The four companies delisted in 2017 included Beco Petroleum Products, MTECH Communications, Mass Telecommunication Innovation (MTI) and UTC.           Ashaka Cement, which merged with its parent company, Lafarge Africa, was delisted under voluntary delisting option.

    In December 2016, the Exchange had delisted six companies, including Lennards (Nigeria) Plc, P.S Mandrides & Company Plc, Premier Breweries Plc, Costain (W.A) Plc, Navitus Energy Plc and Nigerian Ropes under compulsory delisting window.

    It had in May 2016 compulsorily delisted eight companies, including IPWA Plc, G.  Cappa Plc, West African Glass Industries Plc (WAGI), Investment & Allied Insurance Plc, ALUMACO Plc, Jos International Breweries Plc, Adswitch Plc and Rokanna Plc.

  • ‘Nigerian investment outlook remains promising’

    Nigerian economy will maintain a positive growth trajectory that will enhance corporate performance and deliver better returns to investors in the next three quarters.

    In its “Economic Review Report” released yesterday, GTI Securities stated that all indices point towards positive economic outlook for the economy generally and the stock market particularly.

    According to the report, notwithstanding the continued challenges in the global economy as result of continued escalation of trade war among major economies, the Nigerian economic environment is expected to maintain trajectory witnessed in the first quarter of the year.

    The report predicated its positive outlook on improved labour market, private investment, accommodative monetary policies and more stable commodity prices.

    Analysts at GTI Securities stated that they expected the positive economic environment witnessed in first quarter to continue into the second quarter of the year.

    “We expect to see lower inflation reading in second quarter 2018. This will be bolstered by the Central Bank of Nigeria (CBN) unmitigated commitment to deflating any pressure on price stability. We also expect to see an improved first quarter Gross Domestic Products (GDP) reading as result underlying economic indices. The above forgoing is expected to have a positive impact on companies’ performances, thereby boosting activities on the Exchange. This may likely led to market re-pricing of quoted stocks. We equally expect to see other asset classes maintaining positive traction,” GTI Securities stated.

    Analysts noted that with the significant recovery seen in commodity prices, especially crude oil which is trading at more than $69, economy will post a stellar growth in the year.

    GTI Securities premised its optimism on anticipated stronger contribution of the non-oil sector which performed abysmally in 2017 as a result of the gestation period required for some projects initiated in previous years to come into fruition.

    “We expect the equity market to consolidate on the growth witnessed in 2017 with a growth of 20 per cent. This will be driven by positive economic environment and increased participation of foreign investors,” GTI Securities stated.

    According to the research report, the ease of doing business drive by the government through review of various legislations that impedes business activities, improvement on tax administration and coverage areas, increased investment in infrastructure and agricultural activities would provide a boost to the economy.

    Analysts, however, cautioned that the major headwinds to the positive economic outlook are the upcoming election season and government’s seemingly low level of budget implementation, warning that it will be in the interest of the sitting government not to sacrifice economic activities for the sake of politics.

    The investment firm also expressed worry over delay in the passage of 2018 budget into law as a result of power tussles between the executive and legislative arms and the political season expected to pick-up in the second half of the yaer.

    GTI Securities predicted that  economy will grow by 2.3 per cent in 2018 based on the estimated anticipated oil production level of 2.2 million barrels per day and average oil price of $55 per barrel.

    The report also indicated that interest rate could drop to 13 per cent in the second half of this year from the current level of 14 per cent to reduce cost of capital and boost investment while inflation rate is expected to reduce from the current level of 14.33 per cent to 12.5 per cent.

    “We expect the exchange rate to settle at N325 to US dollar at the official market rate. This is in line with our anticipation that the CBN would drive towards a harmonised exchange rate in 2018 in order to allow room for credibility and higher confidence in the system leading to increased participation of foreign investors,” GTI Securities stated.

     

  • Unilever Nigeria declares N2.87b dividend

    The Board of Directors of Unilever Nigeria Plc has recommended payment of N2.87 billion to shareholders as cash dividend for the 2017 business year.

    A breakdown of the dividend recommendation indicated that shareholders will receive a dividend per share of 50 kobo for every share held as at the close of business on Friday April 13, 2018. The dividend will become payable on Friday May 11, 2018.

    Key extracts of the audited report and accounts of Unilever Nigeria for the year ended December 31, 2017 showed impressive growths across key indicators. Turnover rose from N69.78 billion in 2016 to N90.77 billion in 2017. Operating profit doubled from N5.81 billion to N12.95 billion. Profit before tax rose by 172.7 per cent from N4.11 billion in 2016 to N11.21 billion in 2017. After taxes, net profit also leapt by 142.7 per cent to N7.45 billion in 2017 as against N3.07 billion in 2016. Earnings per share doubled from 81 kobo in 2016 to N1.78 in 2017.

    Unilever Plc, United Kingdom, the majority core investor in Unilever Nigeria, recently provided more than N35 billion in the new equity capital to the Nigerian subsidiary under a N59 billion new equity raising.

    Unilever Nigeria had floated a supplementary offer to raise N58.9 billion in new equity funds by selling 1.962 billion ordinary shares of 50 kobo each to existing shareholders at a price of N30 per share. The rights issue was pre-allotted to shareholders in the register of the company as at the close of business on June 28, 2017 on the basis of 14 new ordinary shares for every 27 ordinary shares held.

    Following the full subscription, a total of 1.96 billion ordinary shares of 50 kobo each were added to the outstanding shares in the name of Unilever Nigeria on the Daily Official List of the Nigerian Stock Exchange (NSE). With the new listing of 1.96 billion ordinary shares, the total issued and fully paid up shares of Unilever Nigeria has now increased from 3.78 billion ordinary shares to 5.745 billion ordinary shares of 50 kobo each.

     

  • Stockbroking firms move to reduce operational risks

    Stockbroking firms under the auspices of the Association of Stockbroking Houses of Nigeria (ASHON) have underscored the importance of sound risk management culture among capital market operators in order to safeguard market integrity and investors’ confidence.

    As part of its initiatives to promote risk management culture, ASHON has partnered a frontline management consulting firm, IRM Professionals, to address a range of inherent risk management issues, which impact on the operations of securities firms in Nigeria and proffered the way forward.

    Managing Partner, IRM Professionals, Mrs Owodunni Yussuff, who spoke at the risk management forum for stockbroking firms, , explained that certain risks were peculiar to capital market operations and they should be managed in order to ensure business continuity.

    Yussuff stated that the risks were usually classified into business risk and consequential risk, saying that business risks include credit risk and market risk while consequential risks comprise legal risk, liquidity risk, operational risk, settlement risk and reputational risk

    She explained that apart from the technical risks, there are regulatory risks that are currently affecting capital market operators in Nigeria.

    “As part of minimum operating standard (MOS), they are expected to have a risk management function, and a risk manager.  But many of them are not well equipped in the area of risk management department for optimal performance. As of now, many of our operators have not established what we call risk culture. The principal risk associated with a broker, dealer or a capital market operator in Nigeria  is compliance with the rules and  regulations of the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange and the Investment and Securities Acts (ISA). Capital market operators are obliged to comply with the regulatory rules and regulations in order to avert sanctions with its attendant implications on corporate reputation,” Yussuff said.

    Chairman, Association of Stockbroking Houses of Nigeria (ASHON), Chief Patrick Ezeagu, said that the Association decided on the risk management training in view of inherent risks associated with capital market operation.

    He assured that capacity building would always be on the front burner of ASHON’s activities in order to support global competitiveness of capital market operators in Nigeria..

    “Effective and efficient risk management structure positions stockbroking houses to exist in perpetuity as going concern. Risk changes over time and, therefore, tools for identifying and managing risk must change over time, and the only way you can ensure that we are prepared to manage risks is to continually train and re-train risk managers within the capital market space,” Ezeagu said.

    According to him, it is necessary to consistently train those who are involved in the day to day management of risk associated with stockbroking businesses because once the integrity of the market is assured by the fact that people operate within rules and regulations guiding the market, then you can be sure that the market is well protected.

    “The market is guided by rules and regulations and there is the apex institution that is like the “big brother” watching you. These are the things that ensure that there is integrity and investors can trust the market and participate actively in the market,” Ezeagu said.

     

  • Analysts cautious on equities outlook in second quarter

    Corporate earnings, macroeconomic performance, bargain value and election activities are major factors that will shape the performance of the Nigerian equities’ market in the second quarter of 2018.

    Market analysts were cautiously optimistic on the sustained positive performance of the market, after investors netted N1.38 trillion in net capital gains in the first quarter. Analysts, however, expected a relative quarter-on-quarter slowdown in the second quarter as preparations for Nigeria’s national elections gather momentum.

    Afrinvest Securities Managing Director, Mr. Ayodeji Ebo, said equities market performance in the second quarter will be a spillover of the first quarter and the emerging political environment in the second quarter.

    According to him, the pricing trend in the second quarter will reflect the earnings reports of companies for the first quarter as investors seek to outline the prospects for each company based on its early operational figures.

    “While we expect less activities relative to first quarter, Nigerian economic indicators remain strong, hence, should sustain investors’ confidence. As election activities kick in, investors may trade cautiously prompting more volatility in the equity market in second quarter relative to first quarter,” Ebo said.

    Cordros Capital stated that the improving macro-economic performance will positively impact the equities’ market in the medium to long term.

    “Still-positive macro-economic fundamentals continue to strengthen our medium-to-long term outlook for Nigerian risky assets, while lower prices of value stocks suggest likely bargain-hunting in the short term,” Cordros Capital said.

    President, Chartered Institute of Stockbrokers (CIS), Mr. Oluwaseyi Abe, said the commencement of the meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) will give further direction to the financial markets. After a four-month delay due to protracted delay in confirmation of the new members by the National Assembly, the MPC began its first meeting this year between yesterday and today. It held its last meeting in November 2017.

    Abe noted that with the delay, investors in the money and capital markets have been denied the current policy direction on the Monetary Policy Rate (MPR), cash reserve ratio, liquidity ratio and asymmetrical corridor as they affect investment decision on the activities in the money and capital markets.

    “The MPC is supposed to drive activities both in the money market capital markets as the two markets are inversely related. The inability of the MPC to meet since the beginning of the year has a major drawback on our market.  What it means is that there are no policies that the market can react to. Policy announcements by the MPC drive the economy,” Abe said.

    According to him, the impact of policy decisions by the financial authorities and the government should ginger activities in the capital market.

    Economist and Head, Investment Research and Advisory, SCM Capital, Mr Sewa Wusu, said the current macro-economic environment is supportive to a positive outlook for the equities market.

    “Despite the fact that the market has failed to respond to some of the impressive results released so far, I still think the outlook for second quarter looks positive. Most stocks are trading at their lows and that presents an attractive entry point for the second quarter. The only downside risk will be the election cycle,” Wusu said.

    Network Capital Limited Managing Director, Mr Oluropo Dada said lack of policy direction can bring about distortions and uncertainties in the financial markets.

    FSDH Merchant Bank noted that although Nigeria’s Gross Domestic Products (GDP) growth rate improved further in fourth quarter 2017 at 1.92 per cent from 1.40 per cent in third quarter 2017, the recovery is still very fragile, thus additional monetary policies are required to stimulate a broad-based growth.

    FSDH pointed out that the increase in the crude oil price and favourable crude oil production in Nigeria have increased capital inflows and also led to favourable trade balance.

    “FSDH Research, however, recognises the vulnerabilities of the Nigerian economy to the adverse movements in the crude oil prices, thus the need to stimulate other non-oil sectors to reduce these vulnerabilities,” FSDH stated.

    Analysts at FSDH added that Nigeria recorded the highest Foreign Portfolio Investments (FPIs) inflows in 2017 during the last quarter, which implied improving confidence on the short-term outlook of the Nigeria economy.

    “FSDH Research believes the inflation rate may drop to single digit mid-year, while the exchange rate should remain stable in the short-term. Therefore, there is a need for monetary policy easing to boost credit creation and stimulate economic growth,” FSDH stated.

    Investors in Nigerian equities had ended the first quarter of this year with a net capital gain of N1.38 trillion, sustaining the upswing that had seen quoted equities with net capital gain of N4.36 trillion in 2017.  A strong start in January and February helped the market to moderate a running downtrend in March and sustain the positive quarter-on-quarter performance of the Nigerian equities market.

    Nigeria’s sovereign equities index-the All Share Index (ASI) of the Nigerian Stock Exchange (NSE), indicated average year-to-date return of 8.53 per cent for Nigerian equities in the first quarter, implying that an average investor has earned some 8.53 per cent nominal return on investment over the past three months.

    The first quarter performance places Nigerian equities on the trajectory to sustain the bullishness that had dominated transactions in 2017 and in line with double-digit return projections by many reputable investment firms. Nigerian equities closed 2017 with full-year average return of 42.30 per cent, ranking within the top 10 best-performing equities across the world. Aggregate market value of quoted equities closed 2017 with net capital appreciation of N4.36 trillion.

    Aggregate market value of all quoted equities closed the first quarter of 2018 at N14.993 trillion as against its year’s opening value of N13.609 trillion, representing a net increase of N1.384 trillion or 10.17 per cent. The ASI also rose from its 2018’s opening index of 38,243.19 points to close the first quarter at 41,504.51 points, representing average gain of 8.53 per cent. The difference between the ASI and aggregate market value was due to supplementary listings of shares.

    Nigerian equities had in January 2018 hit all-time high market capitalisation of N15.3 trillion while the ASI had risen to 43,041.54 points, its highest index points since October 2008. The market, however, showed a slowdown in March with average month-on-month decline of 4.21 per cent. The downtrend in March was due largely to profit-taking transactions as investors turned to monetise accrued capital gains.

    Sectoral analysis showed that most investors in Nigerian equities ended the first quarter with positive returns. Investors in industrial goods and banking stocks were ahead of other investors. The NSE Industrial Goods Index recorded the highest quarter-on-quarter return of 10.96 per cent. The NSE Banking Index followed with a return of 9.49 per cent. The NSE Insurance Index rallied average gain of 8.41 per cent. The NSE Oil and Gas Index appreciated by 4.90 per cent while the NSE Consumer Goods Index posted a modest return of 0.21 per cent. The NSE 30 Index, which tracks the 30 most capitalised companies at the stock market, posted a three-month return of 7.30 per cent.

    With the performance in the first quarter, investors have earned net capital gains of N5.744 trillion over the past 15 months. With this, Nigerian equities have technically recovered what they had lost in a three-year period between 2014 and 2016. Investors lost N1.75 trillion in 2014 and followed this with another loss of N1.63 trillion in 2015 and N604 billion in 2016.

    However, the three-month performance was moderated by a running downtrend in the last month of the quarter as investors lost total net value of about N557 billion in March. The peak of the earnings season failed to sustain the bullish start that had dominated transactions in the first two months of the year.

    Benchmark indices at the Nigerian Stock Exchange (NSE) showed a market-wide downtrend in March, despite the release of most audited reports and accounts and dividend recommendations in March. Investors appeared to have shifted from dividend expectation in the early week of the month to sustained profit-taking selloffs, momentarily ignoring the steady improvements in corporate earnings of all the major quoted companies and increases in dividend payouts.

    The ASI  dropped from the month’s opening index of 43,330.54 points to close March at 41,504.51 points, representing average month-on-month decline of 4.21 per cent. Aggregate market value of all quoted equities also declined from its month’s opening value of N15.550 trillion to close the month at N14.993 trillion, indicating net capital depreciation of N557 billion.

     

  • Firms in last-minute rush to meet annual reports deadline

    With tomorrow’s deadline for quoted companies to submit their audited reports and accounts for the 2017 business year, several companies are making last-minute efforts to meet the target. This is  to avoid the poor corporate governance tag and sanction of the Nigerian Stock Exchange (NSE).

    Post-listing rules at the NSE require quoted companies to submit their earnings’ reports not later than three months or 90 calendar days after the expiration of the period. Most quoted companies including banks, major manufacturers, oil and gas companies, breweries and cement companies use the 12-month Gregorian calendar year as their business year. The business year thus terminates on December 31.

    NSE’s regulatory filing calendar indicates that the deadline for submission of annual report for companies with Gregorian calendar business year ended December 31, 2017 is March 31, 2018. However, Thursday March 29, 2018 is the last working day for the period, thus effectively the deadline for submission of the reports, in line with the traditional practice at the Exchange.

    A spokesman for a healthcare company said the firm has concluded preparations and secured necessary approvals for the submission of its audited report not later than tomorrow.

    Many board meetings were scheduled for yesterday for final review and approval of the annual report and financial statement ahead of the filing with the NSE. Lafarge Africa Plc Board of Directors, which had scheduled to meet on March 23, 2018, rescheduled its meeting to March 27, 2018. Also, the board of Studio Press Nigeria Plc, which could not meet due to lack of quorum on  March 22, 2018, rescheduled its meeting to Tuesday, March 27, 20L8.

    Market sources said several companies were finalising arrangements to submit their reports before the close of work tomorrow to beat the close-of-business deadline.

    Notwithstanding the expected rush tomorrow, there are indications that some 35 companies may miss the deadline. Not less than 28 companies were sanctioned for failure to meet the deadline for the submission of the 2016 annual reports.

    However, the NSE can grant waiver and extension to companies due to special consideration such as companies awaiting regulatory approval. Already, many companies have sought for extension of the deadline due to various operational and regulatory issues.

    Oando has indicated that its annual report may be delayed till the second week in May 2018 due to review of the oil and gas company’s report by the Financial Reporting Council of Nigeria (FRCN). “We envisage that the FRCN’s review might take longer than originally anticipated. Therefore, the company may not be able to file the accounts until the second week in May, the exact date of filing will be dependent on the turnaround time at the FRCN,” Oando had stated.

    Royal Exchange has also indicated that its report may be submitted on or before April 28, 2018 due to operational challenges as a holding company. “The company did not anticipate this as we had expected to conclude and submit our 2017 financial statements on or before 31st March 2018. However, as a holding company with five different subsidiaries, the audit exercise for the group is yet to be consolidated and concluded. The reason for the delay is that some of our subsidiaries are yet to submit their accounts to their various regulators for approval,” Royal Exchange stated.

    NSE tags and applies fines on companies that fail to meet earnings reports’ deadline. Under its rules, late submission under the first instance of 90 days could attract N9 million, additional period of 90 days will attract N18 million while delay beyond the first 180 days to another 180 days could attract as much as N72 million, thus bringing fines payable by a defaulting firm within a year to N99 million.

     

  • Prestige Assurance marks out register for 1.6b shares cancellation

    Prestige Assurance Plc and its professional parties have marked out the register of members to be used for the company’s imminent share reconstruction.

    The Nigerian Stock Exchange (NSE) had suspended trading and price movement on Prestige Assurance shares between last Friday, March 23 and Tuesday, March 27, 2018 to enable the company’s Registrars update the shareholders’ register for the company’s planned share capital reconstruction.

    Prestige Assurance plans to cancel about 1.6 billion ordinary shares out of its issued and fully paid up share capital under a share reconstruction that seeks to write off accumulated losses.

    Under the share reconstruction proposal, Prestige Assurance is seeking to reduce its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

    This will lead to reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

    Prestige Assurance stated that the essence of the capital reconstruction is to enable it wipe out its accumulated retained losses of N776.511 million.

    The company noted that the reconstruction will reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

    Besides, the reconstruction will allow the company to declare dividend and improve its perception in the market thereby making it more competitive.

    Its shareholders had, on Friday, August 18, 2017 at its 47th annual general meeting (AGM) in Lagos approved the share reconstruction and authorised the board of directors to take necessary actions to implement the share reduction.

    Established in 1952 as a branch office of The New India Assurance Company Limited, Mumbai, Prestige Assurance was incorporated as a limited liability company on January 6, 1970 and licensed to write all classes of non-life insurance in Nigeria. In order to reflect the majority shareholding of the Nigerian public in the company, its name was changed to Prestige Assurance Plc on September 24, 1992 in line with the indigenisation decree passed by the government. After a successful recapitalisation in 2007 and subsequent rights issue in 2015, Prestige Assurance is currently a subsidiary company of The New India Assurance Company Ltd, Mumbai, which has majority equity stake of 69.5 per cent shareholding.

  • PaySend, Access Bank deepen FinTech

    Card-to-card payments disrupter, PaySend, has partnered Access Bank Nigeria to deepen financial technology (FinTech) space in Africa.

    PaySend’s rapidly expanding business now operates in more than 60 countries and hopes to boost its presence across Africa.

    Its Chief Executive Officer (CEO), Ronald Millar, said: “We are delighted to be expanding into Nigeria and to be working with Access Bank. To have reached over 60 countries in such a short time is excellent and we look forward to a long and fruitful partnership.

    “Nigeria is one of our first African partners and we definitely see great potential in the region.”

    Access Bank, which has over 368 branches and service outlets across Nigeria, sub-Saharan Africa, the United Kingdom (UK) and Dubai, strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant.

    Also commenting on the partnership, Access Bank Executive Director, Victor Etuokwu, said: “Accessibility is important in our business and we see this partnership as vital to connecting our customers to their increasingly globalised network, whether they are business contacts, friends or family.”

     

     

  • MRS Oil declares 20% bonus shares on N2.38b tax credit

    Shareholders of MRS Oil Nigeria Plc will receive a 20 per cent increase in their shares after the board of the oil-marketing company decided to distribute bonus shares on the back of a N2.38 billion tax gain.

    Its board stated that it has recommended distribution of bonus issue of one new ordinary share for every five ordinary shares held by shareholders as at the close of business on July 6, 2018. This implies distribution of 50.8 million ordinary shares to shareholders. After the listing, the bonus issue will increase MRS Oil Nigeria’s issued share capital from 253.99 million ordinary shares of 50 kobo each to 304.789 million ordinary shares of 50 kobo each.

    Key extracts of the audited report and accounts of MRS Oil Nigeria for the year ended December 31, 2017 showed that the company struggled with poor sales and declining margin during the year, ending the year with a pre-tax loss of N996.61 million. However, a tax write-back or gain of N2.38 billion in 2017 boosted the company’s net profit to N1.39 billion.

    The report showed that turnover dropped marginally from N109.64 billion in 2016 to N107.09 billion in 2017. Profit before tax reversed from N2.29 billion in 2016 to a loss of N996.61 million in 2017. Tax gain stood at N2.38 billion in 2017 as against tax provisions of N821.44 million in 2016. With these, net profit stood at N1.39 billion in 2017 as against N1.47 billion in 2016. Earnings per share stood at N5.45 in 2017 compared with N5.77 in 2016.

    Formerly known as Chevron/Texaco Oil Nigeria Plc, MRS Oil Nigeria is owned by more than 24,000 shareholders. One of the major downstream oil companies, MRS Africa Holdings Limited (Bermuda) holds 60 per cent majority equity stake in MRS Oil Nigeria while Asset Management Corporation of Nigeria (AMCON) holds 10.47 per cent. Sundry Nigerian individuals and institutions hold the remaining 29.53 per cent equities.